This presentation shows a time-series plot of the quarterly earnings for Johnson & Johnson shares from 1960 to 1980. The corporate website for Johnson & Johnson can be seen here.
05 August 2018
This presentation shows a time-series plot of the quarterly earnings for Johnson & Johnson shares from 1960 to 1980. The corporate website for Johnson & Johnson can be seen here.
Notice how the earnings plot increases over time, even though there are moves up and down across quarters. The 'hockey stick' shape shows an exponential increase in earnings, which means the company is generating profitable returns from investments. The average growth is 13% quarter on quarter.